From: Perry Lewis [PJLewis@sheffieldmb.com]
Sent: Friday, December 06, 2002 11:15 AM
To: 'rule-comments@sec.gov'
Subject: (s7-36-02/s7-38-02)
*** EMAIL ****
To: rule-comments@sec.gov
RE: Proposed Rules S7-36-02 and S7-38-02
Mr. Jonathan G. Katz
Secretary, Securities and Exchange Commission
450 Fifth Street, NW
Washington, DC 20549-0609
By Electronic Mail and USPS
In Re: File No. S7-36-02 and File No. S7-38-02
Dear Mr. Katz,
Subject: Proposed Rules S7-36-02 and S7-38-02
I am writing to express my (our) strong support for the referenced
Proposed Rules. The voting policies and voting records of investment
advisers can and should be made available to their clients, the public
and the regulatory authorities. The fact that the Department of Labor
already requires such disclosure and that a number of investment
advisors and mutual funds already voluntarily make this information
available is testimony to the feasibility of the proposals.
We strongly believe, however, that the proposals must be expanded.
We urge you to:
1) Apply the same disclosure requirements to all investment
advisers,
2) Require that all investment advisers disclose their share
lending practices, their specific share loan positions and the impact
of their lending practices on their voting policies, and
3) Require that all investment advisers disclose all short
positions held using the same criteria applied to specific disclosure
of long positions.
Without these additions it will be impossible to reconcile voting
rights held to voting actions taken. Without these additions necessary
and appropriate information concerning portfolio risk and potential
conflicts of interest will continue to be unavailable to both clients
and regulators. Without these additions the laudable aims of the
current proposals will fall short of their potential.
Sincerely,
---------------------------------------------------------------
This correspondence is intended for the addressee only. The information in this correspondence has been obtained from sources which Sheffield Merchant Banking Group, a business group of CRT Capital Group LLC (collectively the "Company"), believes to be reliable. However, the Company does not guarantee its accuracy, and such information may be incomplete or condensed. Opinions in this correspondence represent the Company’s position as of this date and are subject to change without notice. This correspondence is for informational purposes only and is not intended as an offer or solicitation in regard to the purchase or sale of any security. The Company and/or its officers and employees may from time to time acquire, hold, or sell a position in the securities mentioned herein. Upon request, the Company will furnish specific information in this regard. If the Company is involved in the purchase or sale of any security, the Company may act as principal for its own account or as agent for the buyer and/or the seller.